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Investment Q&A

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Q: Could you comment on the private placement, is this why the shares are down ~$1 this morning? will this put a ceiling on the share price until the placement closes?

'VANCOUVER, Feb. 17, 2017 /CNW/ - A&W Food Services of Canada Inc. ("Food Services") announced today that it has entered into an agreement with Laurentian Bank Securities Inc. ("LBS") to complete a secondary offering of 373,300 units of A&W Revenue Royalties Income Fund (the "Fund") (TSX: AW.UN) in a private placement on a bought deal basis. Under the agreement, LBS has agreed to purchase 373,300 units of the Fund (the "Units") from Food Services at a price of $39.25 per Unit, for gross proceeds of $14,652,025. The transaction is expected to close on or about February 28, 2017, but not later than March 8, 2017.'
Read Answer Asked by Kuldar on February 17, 2017
Q: The fundamentals I get from CIBC on the company look awful: FPE 26x, ROE is terrible, debt is high at 1.5x Equity or so, P.R. is 4 digits - how can they sustain the very nice dividend and grow it over time? They must have a heck of a lot of non-cash write offs like depreciation, maybe goodwill etc.. Comments please. I'd like a company like this for diversification; but, this one looks like it is way ahead of itself based on positive sentiment NOT fundamentals.
Read Answer Asked by James on February 17, 2017